Alpha Bank (ALPHA) Q1 2025 earnings summary

Executive summary

• Q1 2025 profit after tax reached €223 million, with normalized profit at €239 million, up 8% year-over-year, and a normalized return on tangible equity of 15.4%.

• Operating performance was strong, supported by diversified fee income, solid asset quality, and robust top-line performance.

• Performing loans grew 13% year-over-year, customer funds rose 8% year-over-year, and tangible book value increased 11% year-over-year.

• NPE ratio improved to 3.8%, cost of risk at 53bps, and fully loaded CET1 ratio stood at 16.3% post-dividend accrual.

• Dividend accrual for Q1 at €111 million, representing 50% of profits.

Financial highlights

• Net interest income for Q1 was €395 million, down 6% year-over-year, mainly due to lower rates and fewer calendar days.

• Fee and commission income rose 11% year-over-year to €108 million; asset management fees grew 53% year-over-year.

• Operating income increased 1% year-over-year to €559 million; total operating expenses flat year-over-year at €204 million.

• Pre-provision income was €355 million (+1% y/y); impairment losses fell 24% y/y to €52 million.

• Net loans reached €39.4 billion (+8.5% y/y); deposits at €50.4 billion (+6.6% y/y); tangible equity at €7.2 billion (+9% y/y).

Outlook and guidance

• Upgraded 2027 EPS guidance to above €0.45 (+7%), with RoTE expected to reach ~13% and annual earnings growth of 11% beyond 2025.

• Net interest income guidance for 2025 is at least €1.65 billion, with 2026 guidance at least €1.7 billion.

• EPS projected to grow 8% per annum over the planning period; ordinary payout at 50% from 2025.

• No revision to full-year guidance despite macro uncertainties; capital generation and payout commitments unchanged.

• Capital allocation priorities include organic growth, increasing ordinary payout, share buybacks, and bolt-on acquisitions.